In an era of rapid globalisation and turnkey solutions, businesses are finding themselves in a unique position. They want to tap into the local talent pool. However, establishing a physical presence in multiple locations can be challenging, time-consuming, and cost-prohibitive. This is where Global Capability Centres (GCCs) and flex spaces are creating a powerful synergy.
This partnership is not just reshaping office spaces; it’s redefining how global businesses operate, innovate, and scale across borders. As companies seek to tap into diverse talent pools and optimise their operations, the amalgamation of GCCs and flex spaces is proving to be a formidable strategy, offering unprecedented flexibility, cost-efficiency, and access to cutting-edge infrastructure.
GCCs are facilities established by companies, typically multinational corporations, to centralise and streamline various business functions. These centres are usually set up in countries or states different from the company’s headquarters, often in regions where there is access to a broader talent pool and the operating costs are lower.
Once viewed merely as cost-saving back-office operations, GCCs have today evolved into strategic hubs of innovation and talent. The growth of GCCs, particularly in emerging markets like India, is nothing short of revolutionary. For instance, consider these figures:
• In FY 2023, India hosted 1,580 GCCs, employing 1.66 million professionals.
• By FY 2030, these numbers are projected to skyrocket to 2,400 GCCs, with a workforce of 4.5 million.
• The GCC market size is expected to be more than double, from $46 billion in FY 2023 to $110 billion by FY 2030.
However, this growth isn’t just about numbers; it’s also about the quality and diversity of talent these centres are attracting. But why are GCCs gravitating towards flexible workspaces? The answer lies in the unique challenges and opportunities presented by emerging markets.
The flex factor
In India, the demand for office space leasing is expected to cross 60 million sq.ft. this year, out of which, 18% belongs to flex spaces. This sizable presence of flex spaces equips GCCs with unique capabilities.
In a way, you can think of flex spaces as an equivalent of data centres in human resource management. Like companies lease racks in data centres to set up their servers, relieving them of the operational burden of managing the facility, they lease desks and meeting rooms at flex spaces where they have employee presence.
Flex spaces, or flexible spaces, are particularly in demand among GCCs. Such spaces are built-to-spec facilities based on the unique requirements, including branding preferences, of a GCC.
This approach equips GCCs with multiple advantages, such as the following:
1. Scalability on demand
In the fast-paced world of GCCs, the ability to scale rapidly is paramount. Traditional office leases serve like anchors in this sea of change. Flex spaces, on the other hand, provide unprecedented flexibility.
For instance, when a major tech company needs to expand its Bengaluru GCC from 500 to 1,500 employees in just six months, it ends up overspending and still underutilising its resources since real estate is its non-core function. Setting up a traditional office can in itself take months if not years. The hiring function on top of that takes everything off the charts.
Enterprise flex space solutions here make a massive difference with their network of prime real estate available across the city. The agility in scaling becomes the norm rather than the exception.
2. Talent magnetism
The war for talent is fierce, especially in commercial hubs where GCCs often operate.
Flexible workspaces often offer a range of solutions from private offices to hot desks and meeting rooms, catering to diverse work styles and preferences. This variety allows GCCs to provide their employees with options that suit their individual needs, enhancing job satisfaction and attractiveness to potential hires.
Furthermore, many flexible space providers have a presence across multiple locations in multiple cities. It allows GCCs to tap into talent across various locations, offering employees the convenience of working from professional spaces close to their homes. Such flexibility can be a significant draw for top talent, especially in a post-pandemic world where work-life balance has become increasingly important.
3. Focus on core competencies
GCCs are centres of excellence, not facility management experts. Flex spaces allow them to focus on what they do best by taking care of workplace requirements. These spaces typically provide comprehensive solutions including:
• Site selection and acquisition: Flex space centres are often strategically located in major business districts, with offices in Grade A buildings offering convenience and easy access
• Workplace design and build: Many providers offer customisable workspace solutions that align with a company’s brand and culture
• Facility management support: Day-to-day maintenance, office management services, and other operational support are included, giving GCCs the freedom to focus more on productivity
4. Advanced technology infrastructure
GCCs rely on advanced technology integrations to ensure efficient and secure operations. For safety, flex spaces provide seamless tech integration with features such as smart access systems for enhanced security and visitor management systems. These spaces also offer state of the art tech support, including Data Centre, Cloud Computing Solutions and Engineering, Network Solutions and Integrations, Client-side Computing and comprehensive Software and Hardware Solutions. They also offer robust cybersecurity solutions and a fully functional digital workplace to boost efficiency and maintain confidentiality.
Additionally, many providers offer mobile apps for easy booking of workspaces and other services, enhancing the overall user experience for GCC employees.
5. Advisory services
The rise of GCCs in flexible spaces has also led to the business model evolution of flexible spaces, wherein they offer a range of consultancy services to their GCC partners. This includes everything from legal entity formation and structuring to audits, regulatory compliance advisories, financial compliance, and taxation.
These experts understand the unique requirements of global companies and can bridge the gap between corporate needs and local realities.
6. Workspace analytics
For GCCs, data-driven decision-making is crucial. Advanced flex spaces also provide analytics dashboards that offer insights such as space utilisation trends, peak occupancy times, and energy consumption patterns. These analytics enable GCCs to optimise their space utilisation, improve operational efficiency, and make informed decisions about their workspace needs.
At last, many GCCs have already experienced the benefits of flex spaces, leading to a powerful word-of-mouth effect. Success stories are mounting, and companies that were once hesitant to enter new markets due to escalating costs and operational concerns are now open to expand and explore through this model. This trend is creating a virtuous cycle, attracting more GCCs to flex spaces and driving further innovation in the sector.
Flex spaces are not just providing physical space for GCCs, but a comprehensive ecosystem that supports their growth, flexibility, and operational excellence. As GCCs continue to expand in emerging markets, the role of such flexible workspace solutions is bound to be more critical in their success story.
The writer is Deputy CEO, Awfis Space Solutions.
Published - December 20, 2024 05:02 pm IST
